The euro pared losses near 1.1500 against the dollar as traders await key US producer inflation figures for directional cues.
The EUR/USD pair rebounded from a 1.5-week low near 1.1500 during European trading, recovering from early-session losses. The move comes as investors position ahead of US producer price index data, which could influence Federal Reserve policy expectations.
Earlier, the pair tested levels below 1.1500 but failed to sustain momentum, reflecting cautious sentiment before the inflation release. The psychological 1.1500 level has acted as near-term support, with traders monitoring whether the data will reinforce or ease recent dollar strength.
Market focus remains on inflation trends, with PPI figures seen as a precursor to upcoming consumer price data. The euro’s resilience above 1.1500 suggests limited downside conviction amid mixed signals on transatlantic monetary policy divergence.